Traders work on the floor of the New York Stock Exchange.
Stocks are likely to be volatile over the next couple of weeks, as the sell-off in high fliers like Tesla and cryptocurrencies has soured investor sentiment.
But strategists say the market is more likely in a pullback and not entering a larger correction.
Bitcoin tumbled in volatile trading Wednesday. The cryptocurrency plunged to $30,000 overnight, a 30% decline and other crypto assets fell with it. By the end of the day, it was down 7.5%, just below $40,000, according to Coin Metrics.
The stock market took its early cue from bitcoin, ripping lower before reversing its worst losses
“It’s very skittish. I think that’s the word of the day,” said Katie Stockton, founder of Fairlead Strategies. Wednesday “was a good reminder we’re still in pullback mode. … I think it’s definitely influenced retail sentiment.”